Market Profile

Background

A Market Profile is an intra-day charting technique (price vertical, time/activity horizontal) devised by J. Peter Steidlmayer, a trader at the Chicago Board of Trade (CBOT), circa 1959-1985. Steidlmayer was seeking to evaluate market value as it developed in the day time frame. Steidlmayer's charts displayed a bell shape, fatter at the middle prices, with activity trailing off at the higher and lower prices. In this structure he recognized the 'Normal' or Gaussian distribution.

(Glossary of Market Profile terms)

The Indicators

I have produced 3 main indicators based on Market Profile techniques:
  • Profile
    • This indicator is essentially similar to the traditional Market Profile. It supports many options for profiling on different time frames (daily, weekly, monthly, etc.) as well as different display modes, and additional features such as VWAP, NPOC, HVN, LVN, etc. Manual profile splits and Variable Time Profiles are also supported.
  • Composite Profile
    • This indicator is generally used for producing a profile of the whole chart, or a large section of it (e.g. last major swing). The analysis period can be entered manually, from the chart, or as "last N-bars". The indicator typically generates the profile from lower time-frame data (e.g. using 1min data source, even though the chart could be 1H, etc.)
  • Candle Profile
    • This indicator uses the same underlying technology as the Composite Profile, except that it does so on an individual candle/bar basis. The profile is generated from lower timeframe data (e.g. using 1min data source, even though the chart could be 1H, etc.) .

Screenshots

Market Profile

Composite Profile

Candle Profile

Availability

These indicators are available individually or together as the Market Profile Bundle. See Store page for details.